Wondering how the US markets performed one hour before the close of the markets on Monday? Discover the movers and shakers of today's session in our comprehensive analysis.
Shares of project management software maker Monday.com (NASDAQ:MNDY)
fell 26.5% in the morning session after the company reported second-quarter results that beat analyst estimates but issued a weaker-than-expected revenue outlook for the third quarter. The main concern for investors was the company's third-quarter revenue guidance of $311 million to $313 million. The midpoint of this range fell just short of Wall Street's forecast and signaled a potential slowdown in growth. This overshadowed the company's revenue and profit beats in the second quarter. Adding to investor concerns, profitability weakened, with the GAAP operating margin falling to -3.9% from 0.8% in the same quarter last year. The company's free cash flow margin also decreased year on year to 20.1%. These negative forward-looking indicators and weakening margins prompted a significant sell-off in the stock, despite an otherwise solid quarter.
monday.com reports strong Q2 2025 earnings, beating EPS estimates, but shares drop due to slowing revenue growth and margin concerns. Enterprise traction remains solid.
Project management software maker Monday.com (NASDAQ:MNDY) reported revenue ahead of Wall Street’s expectations in Q2 CY2025, with sales up 26.6% year on year to $299 million. The company expects next quarter’s revenue to be around $312 million, close to analysts’ estimates. Its non-GAAP profit of $1.09 per share was 27% above analysts’ consensus estimates.
Growth is a hallmark of all great companies, but the laws of gravity eventually take hold.
Those who rode the COVID boom and ensuing tech selloff in 2022 will surely remember that the market’s punishment can be swift and severe when trajectories fall.
Shares of project management software maker Monday.com (NASDAQ:MNDY)
jumped 3.1% in the afternoon session after investment firm Baird upgraded the stock to Outperform from Neutral and raised its price target to $310. The investment firm pointed to the stock's recent decline as a compelling buying opportunity, noting shares had dropped 21% since July. Baird's analysts expressed growing confidence in the company's platform leadership, highlighting its potential to use its position in collaborative work management to deliver value with generative AI. The upgrade also arrived ahead of the company's second-quarter results, which Baird anticipated would be solid.
